In 1942 Field spent $63,000 on pictures and $425,000 to maintain news bureaus and other items, an outlay due chiefly to the monopoly conditions he faced—which anyone who wants to publish must face. A smaller capitalist would have been licked at that point, but Field had sufficient power to launch anti-trust proceedings against Associated Press as a means of breaking out of the encirclement.
The United States Supreme Court sustained Field. The Tribune-A.P. were forced to let him purchase the A.P. news report. But the court decision has not made a general break in the monopoly structure. If one of the major trade union bodies, for instance, wants to publish a daily newspaper in New York, Chicago, Detroit or Los Angeles, there is nothing to prevent A.P. and all the other services from declining to sell their indispensable goods.
There is no use dreaming about building—on however broad a liberal-labor cooperative plane—an independent apparatus to escape the news, picture and feature service squeeze. It would cost not millions but billions. Though the services have acquired an independent existence and structure, they are basically the American press itself. The newspapers are not only their market but their major source of supply. They provide most of the local news and pictures used by the agencies.
This Is Monopoly
Some idea of the concentration and integration of the American newspaper industry may be obtained by a glance at Associated Press, the typical expression of the industry. A.P. has bureaus in 250 world cities, 94 within the U.S. Seven of these have fifty or more full-time staff members and the whole A.P. domestic payroll covers 7,200 employees, 1,940 on a full-time basis. A.P. also has 2,500 correspondents abroad using a leased transatlantic cable. It has 290,000 miles of leased wires linking 727 American cities. Its daily general news report alone exceeds 1,000,000 words, single metropolitan papers taking from 250,000 to 300,000 words a day. There are endless additional reports. A.P.’s 1942 expenditures totalled $12,986,000. (United Press spent $8,628,000; I.N.S., $9,434,000.) A.P.’s material reserves exceed $100,000,000.
But all this describes only the independent structure of Associated Press. The bulk of the personnel of the American press is also a part of the A.P. apparatus. Member papers—which means most of the country’s newspapers and all the important ones—must make all their news available to A.P. and are expected to withhold it from anyone outside of A.P. Even employees of the papers are similarly bound. Any news they “spontaneously” acquire belongs to A.P. Thus, instead of a mere 5,000 to 10,000 employees, A.P. really has some 100,000 persons working for it every hour of the day and night. It coordinates the whole news-gathering apparatus of the American press. It does this on an exclusive basis. It is not only a monopoly but the expression of the monopolistic organization of the American press.
Pikers Barred
The monopoly structure of the industry plus the size and complexity of newspaper operation from a business point of view, have made it impossible for any but multimillionaires to enter the field. As a logical result, there has been a steady shrinkage of the field—a drop in the number of dailies from 2,600 in 1909 to 1,744 at the beginning of 1945.
This shrinkage has been accompanied by a virtual disappearance of competition in most cities. In 1899, 353 cities were dominated by a single newspaper. In 1920 there were 720 such cities. In 1945 there were 1,103. In many of the remaining cities, the “competing” papers were under a single ownership so that the actual number of cities without competition in 1945 was 1,277. Conversely, there were 549 cities with local competition in 1920 but only 117 in 1945. In percentages it is still worse. Of all cities having newspapers, only 8.4 per cent had competition in 1945.
Even these figures are flattering to the myth of free and competitive enterprise. Veiled joint ownership and “gentlemen’s agreements” plus the spread of the chains and the general standardization process still further reduce the area of competition and restrict the diversity of views. Only the half-dozen largest cities in the United States have dailies with competing views in even the narrowest sense. The 25 largest cities average but three ownerships. Editor and Publisher, organ of the owners, admits the phenomenon and apologizes for it.